Sprott Consulting and Sprott Resource Corp. celebrate milestones
Sprott Resource Corp. marks
five-year anniversary with 28%1 IRR
Sprott Consulting surpasses $1
billion in total assets in its managed companies
TORONTO,
Nov. 19, 2012 /CNW/ - Sprott Inc.
(TSX: SII) ("Sprott") today announced that Sprott Consulting
LP (Sprott Consulting) has surpassed $1
billion in combined total assets in its managed companies.
Sprott also congratulates Sprott Resource Corp. on marking five
successful years of operation on September
5, 2012.
"Since launching Sprott Consulting in 2007 to
capitalize on new and unique business opportunities, Kevin Bambrough and his team have established an
impressive track record of value creation and demonstrated the
ability to identify emerging trends well ahead of the broader
market," said Eric Sprott, Chairman
of Sprott. "Sprott Consulting's first venture, Sprott Resource
Corp., was created to give investors access to private equity-type
investments in the resource sector. Since beginning operations in
2007, that company has generated a five-year internal rate of
return of approximately 28% and grown its total assets from
$78 million to more than $580 million. Over the same time period, Sprott
Consulting has expanded and diversified, successfully launching
businesses in the resource lending, renewable power and energy
finance sectors. Together, Sprott Consulting's managed companies
now represent more than $1 billion in
total assets. We are extremely proud of the accomplishments of
Kevin and the entire Sprott Consulting team and look forward to
their continued success over the next five years."
"Sprott Consulting provides individual and
institutional investors with access to unique private equity and
private debt type investment opportunities in the natural resource
sector," said Peter Grosskopf, Chief
Executive Officer of Sprott. "We are pleased with the progress of
each of these companies and believe that they are all well
positioned for continued growth. Reaching $1
billion in total assets in less than five years is a strong
validation of the strategy and a testament to the abilities of our
team."
"We are very proud of what we have been able to
accomplish in five years at Sprott Resource Corp.," commented
Kevin Bambrough, Chief Executive
Officer of Sprott Resource Corp. "We have built a unique company
focused on investing counter-cyclically in real assets that are
ideally suited to perform well in today's uncertain economic
environment. We believe our strategy will continue to deliver
results and we are actively looking for new investment
opportunities to create additional value for our shareholders."
On September 5,
2012, Sprott Resource Corp. passed its five-year anniversary
under the management of SCLP. Sprott Resource Corp. has calculated
an internal rate of return of approximately 28% for the period from
September 30, 2007 to September 30, 2012. Over the same period, the
S&P TSX Venture Composite Index declined at an annualized rate
of -13.9%.
About Sprott Consulting
Sprott Consulting is a division of Sprott that provides active
management services to public and private companies and
partnerships formed to capitalize on unique business opportunities.
Sprott Consulting brings deep bench strength with a highly-talented
and knowledgeable team of professionals who have extensive
experience and a proven ability to design creative solutions that
lead to market-beating value improvement. Sprott Consulting's
managed companies include:
- Sprott Resource Corp., (TSX: SCP) invests and operates through
its subsidiaries in the natural resource sector
- Sprott Resource Lending Corp., (TSX: SIL, AMEX: SILU) a global
lender to the resource industry focused on mezzanine and bridge
financing
- Sprott Power Corp., (TSX: SPZ) a renewable power developer and
operator with approximately 70MW in wind assets under
management
- Toscana is based in Calgary
and, through two subsidiaries, provides debt financing alternatives
to companies engaged in the exploration and development of oil and
gas in Western Canada and invests
in medium to long life oil and natural gas assets
For more information about Sprott Consulting, please visit
www.sprottconsulting.com.
About Sprott Inc.
Sprott Inc. is a leading independent asset manager dedicated to
achieving superior returns for its clients over the long term. The
Company currently operates through four business units: Sprott
Asset Management LP, Sprott Private Wealth LP, Sprott Consulting
LP, and Sprott U.S. Holdings Inc. Sprott Asset Management is
the investment manager of the Sprott family of mutual funds and
hedge funds and discretionary managed accounts; Sprott Private
Wealth provides wealth management services to high net worth
individuals; and Sprott Consulting provides management,
administrative and consulting services to other companies. Sprott
Inc. is headquartered in Toronto,
Canada, and its common shares are listed on the Toronto
Stock Exchange under the symbol "SII". For more information on
Sprott Inc., please visit www.sprottinc.com.
(1) Non-IFRS Financial
Measure
Internal rate of return is a rate of return
measure often used in investment analysis to compare investment
opportunities. We believe providing an internal rate of return
measure on a supplemental basis is helpful to investors in
assessing the overall performance of Sprott Resource Corp. over the
past five years. Non-IFRS financial measures do not have a
standardized meaning prescribed by IFRS and are therefore unlikely
to be comparable to similar measures presented by other issuers.
Past performance is not a reliable indicator of future results.
The internal rate of return calculation
incorporated cash flows beginning on September 30, 2007 related to issuance of Sprott
Resource Corp. common shares, including through the exercise of
warrants and stock options, the repurchase of common shares through
normal course issuer bids and the payment of management fees and
incentive fees and excludes income taxes paid. The calculation also
includes management's estimate of the fair value of subsidiaries
and entities over which Sprott Resource Corp. has significant
influence, if different from the net asset value reflected in
Sprott Resource Corp.'s financial statements. The internal rate of
return calculation does not correlate perfectly with the
performance of Sprott Resource Corp.'s quoted stock price from its
listing on the listed on the Toronto Stock Exchange, or the
compound annual growth rate of the net asset value due to the
adjustments described above.
Forward-Looking Statements
This release contains "forward-looking
statements" which reflect the current expectations of Sprott
Inc. These statements reflect management's current beliefs
with respect to future events and are based on information
currently available to management. Forward-looking statements in
this press release include, but are not limited to, statements with
respect to Sprott Consulting LP and Sprott Resource Corp.'s growth
and future performance. Forward-looking statements involve
significant known and unknown risks, uncertainties and assumptions,
including with respect to the anticipated performance of the
managed entities of Sprott Consulting LP. Many factors could
cause actual results, performance or achievements to be materially
different from any future results, performance or achievements that
may be expressed or implied by such forward-looking statements
including, without limitation, those listed under the heading "Risk
Factors" in Sprott's annual information form dated March 27, 2012. Should one or more of these risks
or uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results,
performance or achievements could vary materially from those
expressed or implied by the forward-looking statements contained in
this release. Although the forward-looking statements contained in
this release are based upon what Sprott believes to be reasonable
assumptions, management cannot assure investors that actual
results, performance or achievements will be consistent with these
forward-looking statements. These forward-looking statements are
made as of the date of this release and Sprott does not assume any
obligation to update or revise them to reflect new events or
circumstances, except as required by law.
SOURCE Sprott Inc.